MKS MKSI shares rallied 7.5% in the last trading session to close at $410.31. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.3% gain over the past four weeks.
MKS is seeing rising demand tied to AI-related semiconductor investment, driving a $25 million expansion of its Guangzhou manufacturing facility to double production capacity and strengthen support for advanced semiconductor, packaging, and PCB customers across Asia by 2027.
This maker of analysis and processing equipment for semiconductor companies is expected to post quarterly earnings of $2.92 per share in its upcoming report, which represents a year-over-year change of +65%. Revenues are expected to be $1.2 billion, up 23.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For MKS, the consensus EPS estimate for the quarter has been revised 5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MKSI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
MKS is a member of the Zacks Electronics - Miscellaneous Products industry. One other stock in the same industry, Timken TKR, finished the last trading session 4.4% higher at $144.01. TKR has returned 8.5% over the past month.
Timken's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.63. Compared to the company's year-ago EPS, this represents a change of +14.8%. Timken currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).